This Is a Loss Contingency

question 107

Essay

This is a loss contingency. Barone can use the information occurring after the end of the year in determining appropriate disclosure. It is unlikely that Barone would choose to accrue the $18 million loss because the judgment will be appealed and that outcome is uncertain. A disclosure note is appropriate:

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Definitions:

Break-even Analysis

An examination to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Total Revenues

Total revenues refer to the sum of all income generated by a business from its sales or services before any expenses are subtracted.

Territory Analysis Software

Digital tools designed to help businesses analyze and manage their sales territories, including customer distribution, sales potential, and resource allocation.

Purchase Volume

Purchase volume refers to the quantity of goods or services bought over a specific period of time.